yield spread premium


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yield spread premium

See service release premium.

References in periodicals archive ?
Curiously, the court later clarified its earlier ruling, stating "certainly the court has not reached a final decision about the legality of yield spread premiums."[9]
These decisions have created exactly what the industry fears: a patchwork of decisions instead of a clarification of the yield spread premium issue.
The number of class-action lawsuits filed in connection with the yield spread premium issue constitute another example of the interrelationship of events and the reform efforts that followed.
In the first month of 1998, the lack of clarity on the yield spread premium issue was evidenced in the 11th Circuit Court of Appeals' Culpepper v.
Critics say yield spread premiums are partly responsible for spiking foreclosures.
Implementation was delayed last month after industry officials objected, saying they feared Coakley intended a blanket prohibition of yield spread premiums.
(37) Mortgage brokers have strong incentives to engage in steering due to "yield spread premiums." (38) These are premiums lenders pay mortgage brokers if they persuade borrowers to accept higher interest rates even though the lenders would, if pressed, grant the loan at lower rates.
1, 1999) (noting that yield spread premiums might be illegal where mortgage brokers receive additional fees for convincing borrowers to accept higher rates).
In a recent economic analysis, Professor Howell Jackson concluded that yield spread premiums "serve only to [benefit] mortgage brokers," not consumers, and levy "implicit interest rates [that] are absolutely outrageous." See Hearing on "Predatory Mortgage Lending Practices: Abusive Uses of Yield Spread Premiums" Before the Senate Comm.
THE MBA APPLAUDED THE DEPARTMENT OF Housing and Urban Development's (HUD's) statement in which HUD clarified its interpretation of the Real Estate Settlement Procedures Act (RESPA) regarding yield spread premiums (YSPs).
A: A rule that basically directs HUD or represents the view of the federal government that yield spread premiums are not illegal, period.
that went against the mortgage industry on yield spread premiums. How is MBA responding to that?